Trian issues White Paper on P&G, aims to fix 'underperformance'
Trian Fund Management, whose investment funds beneficially own approximately $3.5B of shares of The Procter & Gamble Company, issued a White Paper on Procter & Gamble that "analyzes its track record of underperformance, presents Trian's strategic initiatives to regain lost market share and makes clear why it is important for shareholders to elect Nelson Peltz to the P&G board." Trian said that P&G's total shareholder return over the past decade has lagged both its peers and the S&P 500 and that it is still "suffering" from the same factors that have led to "consistent underperformance," including eroding market shares, aging brands with a lack of breakthrough innovations, excessive costs, misaligned executive compensation and a suffocating bureaucracy that Trian believes creates profit-reducing complexity, obscures accountability, slows decision-making and impedes sales growth. Trian said that, with Nelson Peltz on the P&G boar,d the company can regain lost market share through organizing in a way that promotes accountability, ensuring the company's cost cutting plan actually delivers results, fixing the innovation mahcine, developing small, mid-size and local brands, making M&A a growth strategy and core competency, winning in Digital, and addressing the company's insular culture. Trian urges P&G shareholders to vote "FOR" Nelson Peltz on the WHITE proxy card today.